78R3093 ESH-D

By:  Bivins                                                       S.B. No. 1307



A BILL TO BE ENTITLED

AN ACT

relating to the treatment for school finance purposes of ad valorem 
taxes levied against certain property owned by debtors in 
bankruptcy proceedings.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 42.302, Education Code, is amended by 
amending Subsection (b) and adding Subsection (f) to read as 
follows:
	(b)  In computing the district enrichment tax rate of a 
school district, the total amount of maintenance and operations 
taxes collected by the school district does not include the amount 
of:
		(1)  the district's local fund assignment under Section 
42.252; [or]
		(2)  taxes paid into a tax increment fund under Chapter 
311, Tax Code; or
		(3)  delinquent taxes collected that were previously 
considered to have been collected under Subsection (f).
	(f)  For purposes of this section, school district taxes 
levied against property that cannot be collected because the 
property owner is a debtor in a bankruptcy proceeding under Title 
11, United States Code, are considered to be collected in the year 
in which the taxes are levied, if the taxable value of the property 
exceeds four percent of the district's total taxable value of 
property.  The commissioner in consultation with the comptroller 
shall adopt rules for determining whether related or affiliated 
entities that are debtors in one or more bankruptcy proceedings are 
to be considered as a single property owner for purposes of this 
subsection.
	SECTION 2.  This Act takes effect September 1, 2003.